Sensitivity Analysis of Inputs of an Organization: A Profit Maximization Exploration

Devajit Mohajan and Haradhan Mohajan
Authors registered in the RePEc Author Service: Dr Haradhan Kumar Mohajan ()

MPRA Paper from University Library of Munich, Germany

Abstract: This article tries to discuss sensitivity analysis of various inputs of an organization during profit maximization investigations. In this study Cobb-Douglas production function is analyzed with a detail mathematical analysis. The method of Lagrange multiplier is a very useful and powerful technique in multivariate calculus, and it is applied here to obtain higher dimensional unconstrained problem from the lower dimensional constrained one. In the article determinant of the 6×6 bordered Hessian matrix and 6×6 Jacobian are operated for consulting sensitivity analysis efficiently.

Keywords: Lagrange multiplier; profit maximization; sensitivity analysis (search for similar items in EconPapers)
JEL-codes: B41 C3 C53 C58 C61 C67 C68 H4 J3 (search for similar items in EconPapers)
Date: 2023-03-10, Revised 2023-03-12
New Economics Papers: this item is included in nep-eff
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published in Law and Economy 4.2(2023): pp. 32-48

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:117121

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